Wipro Q2 profit rises 7% QoQ, guides Q3 dollar revenue growth at 0.8-2.8%

Wipro

Software services provider Wipro reported a 7 percent sequential growth in second quarter profit at Rs 2,552.7 crore while the guidance for Q3 was ahead of analyst estimates.

Profit in quarter ended June 2019 stood at Rs 2,387.6 crore.

As the street generally follows company’s IT services business that grew by 2.1 percent quarter-on-quarter to Rs 14,656.1 crore in September quarter.

IT services revenue in dollar terms increased 0.5 percent sequentially to $2,048.9 million while the same in constant currency grew 1.1 percent QoQ.

“We had a good in-quarter execution on both revenues and margins. The overall growth was broad based with 6 out of 7 industry verticals growing on a YoY basis and we signed a large deal in India aligned to our strategy of taking global offerings to India customers,” Abidali Z Neemuchwala, CEO and Managing Director said.

The company expects its revenue from IT Services business in the range of $2,065 million to $2,106 million in December quarter, a growth of 0.8-2.8 percent over the September quarter, which was ahead of analysts estimates.

The poll of analysts conducted by CNBC-TV18 had expected Q3 guidance at 0-2 percent growth QoQ.

At operating level, IT services’ earnings before interest and tax (EBIT) fell 0.1 percent sequentially to Rs 2,650.7 crore and margin contracted 40 bps to 18.1 percent in quarter ended September 2019, impacted by wage revision.

Wipro’s wage revision cycle is effective from June 1 of every year.

Operating performance was ahead of analyst estimates of Rs 2,549 crore and 17.5 percent for the quarter respectively, according to a CNBC-TV18 poll.

“We delivered operating margins in a tight range after absorbing the impact of two months of wage hike. Growth remains our priority and we remain invested for future,” Jatin Dalal, Chief Financial Officer said.

Wipro successfully completed the buyback program of 32.31 crore equity shares in September. This has resulted in a total cash outflow of Rs 10,500 crore, company said.

news Source:- moneycontrol

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